Original Research Article Journal of Management Research and Analysis, 2016;3(1):49-52 49 Service Quality Evaluation of Private Hospitals using SERVQUAL Sugandha Sirohi 1,* , Rajendra Singh 2 1 PhD Scholar, Institute of Management Studies, 2 Director, School of Commerce, DAVV, Indore, M.P *Corresponding Author E-mail: sugandha.duggal@gmail.com Abstract Background & objectives: Service Quality Evaluation has become a vital aspect of medical care. Hospitals have expanded in terms of availability of specialties, improved technologies, facilities and increased competition and the expectations of patients and their relatives have increased many fold. The patients and their relatives coming to the hospital not only expect world-class treatment but also other facilities to make their stay comfortable in the hospital. Knowledge of expectation combined with understanding of perceived service quality facilitates designing and implementing programs to satisfy patients. The study was conducted with an objective of measuring service quality of IPD patients in a private hospital of Indore District of Madhya Pradesh. Methods: Cross-sectional study was conducted by collecting primary data from 422 IPD patients on the day of discharge using SERVQUAL questionnaire developed by Parasuraman et al. Results: As per the results of the study the major reason of choosing the hospital for treatment was good word-of-mouth from old patients and from senior consultants, infrastructure, proximity of hospital and expert clinical and non-clinical supportive staff. It was found that patients were highly satisfied with the basic amenities, behavior of doctors and staff of the hospital, timely medication, friendly hospital procedures and transparent billing system. Interpretation & Conclusions: Research findings discussed demonstrate that the more a patient is satisfied the more he/she is expected to recommend the hospital to other patients who need healthcare services. Therefore hospitals should implement patient satisfaction measurement as a quality indicator and thereby actively seek to improve the services provided. Objective: The main objective of the study is to measure the service quality of IPD (Inpatient Department) patients in a private hospital of Indore District of Madhya Pradesh. Keywords: In-patient department, Patient satisfaction, Service quality, SERVQUAL Access this article online Quick Response Code: Website: www.innovativepublication.com DOI: 10.5958/2394-2770.2016.00006.5 Introduction It has become necessary for hospital managers to understand and measure patients’ perspectives and service quality gaps in order to identify and suitably address if there is any perceived gap in delivering services taking into consideration the resource constraints under which hospitals must function. Keeping in mind the competitive market it has now a day’s become important to demonstrate that hospital services are customer-focused and directed towards providing best possible medical care to the clientele of the hospital (Pakdil & Harwood, 2005). Therefore the importance of patient’s expectations in service quality evaluation has been widely acknowledged. Service quality has become an essential subject in view of its significant relationship to profit, cost saving and market share (Devlin and Dong, 1994). Researches has shown that good service quality leads to the retention of existing customers and the attraction of new ones, reduced costs, an enhanced corporate image, positive word-of-mouth recommendation and, ultimately, enhanced profitability (Cronin et al., 2000; Kang and James, 2004). A number of studies have addressed the relationship between service quality and customer satisfaction and it is generally believed that higher levels of service quality lead to higher levels of customer satisfaction (Kang and James, 2004; Pollack, 2008). Patients’ service quality perceptions are believed to positively influence patient satisfaction, which sequentially influences the patient’s decision positively to choose a specific healthcare provider (Andaleeb, 2001; Taylor, S., 1994). Teresa et.al (1996) defines satisfaction as a function of confirmation or disconfirmation of expectations. Patient satisfaction is a common determinant in selection of hospital, use of services, complaints during the stay and malpractice suits (Ware, 1987). The difference between customer expectations regarding a service to be received and perception of the service to be received has been conceptualized as service quality (Parasuraman et. al, 1988; Gronroos, 2001). Parasuraman et al., 1988 has defined service quality as “a global judgment or attitude relating to the overall excellence or superiority of the services.” Five dimensions of service quality (viz. reliability, responsiveness, assurance, empathy and tangibles) has been identified by Parasuraman et al. (1988) that link specific service characteristics to